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Bayhorse Silver Inc V.BHS

Alternate Symbol(s):  BHSIF

Bayhorse Silver Inc. is a junior natural resource company, which is engaged in the acquisition, exploration and development of natural resource properties. The Company has a 100% interest in the Bayhorse Silver Mine, Oregon United States of America. The Bayhorse Silver Mine and the Pegasus Project are 44 kilometers (km) southwest of Hercules Metals’ porphyry copper discovery. The Company also has an option to acquire an 80% interest in the Brandywine Property located in British Columbia, Canada. The Brandywine Property is located near Squamish, British Columbia.


TSXV:BHS - Post by User

Comment by Henrich428on Apr 29, 2021 11:21am
255 Views
Post# 33091016

RE:Miners smashed

RE:Miners smashed

Next-best thing to BHS in my opinion in terms of risk-reward is BLLG (Blue Lagoon Resources). It's my second-largest position after BHS (although even then, my BHS position is many times larger). It's another near-term producer which is just about to get re-rated should everything go according to plan. Market cap is almost exactly the same. I think that these are some really good places to get an entry-level assessment of the company:

https://www.321gold.com/editorials/moriarty/moriarty101620.html
https://www.youtube.com/watch?v=IVuaj-NFacQ
https://www.tfmetalsreport.com/podcast/10770/special-podcast-update-rana-vig-ceo-blue-lagoon-resources
https://epsteinresearch.com/2021/03/10/blue-lagoon-resources-high-grade-gold-silver-in-production-this-year-cheap-valuation/

Summary from B. M.: "Two old guys, now 83, spent $28 million over the last dozen years building infrastructure and preparing the Dome Mountain project for production of high-grade gold. Eventually, while the Exit sign wasn’t flashing, it was illuminated and they realized they needed to turn over the project to someone who could and would finish the last 1% of work necessary. So in stepped Rana Vig, who picked up the mine for 13.52 million shares then valued at $2 a share. It’s an all share deal. Over the years there has been over $68 million spent on the project."

Dome Mountain is a world-class property whose potential isn't priced in by the market simply because it doesn't have a massive 43-101 resource (just like BHS). 15 known high-grade gold veins, and the ratio of silver to gold in the ground is apparently 2:1. Permitted for 75,000 tons a year, and they will make use of Nicola Mining's mill for production.

The reason why I still believe that BHS is better is because BLLG's near-term production-capacity is something like 9000-12,000 AuEq ounces a year. Let's say that that gives them $10 million per annum in profit; even then they would always have to split the profits with Nicola Mining, because BLLG don't have their own mill. Bayhorse do have their own mill. Furthermore, once Bayhorse get up to 1.3 million silver ounces per annum at an AISC of $10, that's $20 million in cash flow at $26 silver. I'm also a silverbug so naturally I believe that silver offers far more leverage than gold as this PM bull market progresses. BLLG do think that they can move up to 25,000 AuEq a year by the middle of 2022, but then BHS also have the blue-sky potential of a possible 400 tpd upgrade, or finding much higher-grade ore in the Big Dog Zone to yield even more ounces under the current 200 tpd limit, or getting Brandywine into production.
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